Life on Credit

The art of borrowing money

What Is Driving up the Prices in Cottage Country?

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It is mainly Canadians living in urban areas that are driving up prices in the cottage industry, including knowledge workers, seniors, and young families with children. Amidst the pandemic, cottage prices increased by 11.5 percent in 2020, and this trend is expected to continue in 2021. More and more people are choosing to relocate to small towns and rural areas and are buying all sorts of properties, including cabins, chalets, and farmhouses. For many of them, the most important thing is to have a stable internet connection as many are working remotely.

What Figures Tell

While home sales skyrocketed by over 31 percent in November 2020, cottage properties gained in value because of increased demand. Ontario is leading when it comes to price gains, with an increase of close to 30 percent in some places and hikes of 15 percent in Moncton, Montreal, and Ottawa. The recreational property industry is booming in Ontario, with home prices skyrocketing in North Muskoka (17 percent), Haliburton Highlands (28 percent), Gravenhurst (44 percent), and Rideau Lake (25 percent). The prices of recreational homes in Quebec also saw significant gains, with increases by 36 percent in Sutton and 27 percent in the Laurentides. According to senior economist Robert Kavcic working for BMO Capital Markets, the trend is expected to continue in 2021.

Inventory levels have hit record low levels due to increased demand, with buyers from Quebec and Ontario relocating to the countryside. A recent report by Royal LePage confirms this, pointing to the fact that real estate agents in more than half of the regions (54 percent) report increased demand for cottage properties. The report also shows that more retirees are choosing to relocate, with 68 percent of regions seeing a significant increase compared to 2020. Because of the surge in demand, the prices of waterfront properties are up by 13.5 percent to about $498,000, the average price of recreational homes standing at $453,000

In British Columbia, the biggest gains are in Kimberley/Cranbrook (over 27 percent) and Whistler (18.3 percent). Condo prices have also increased by 15.5 percent.

Why Are Prices Going Up

As many businesses, restaurants, hotels, and recreational venues remain closed or are operating at reduced capacity, people don’t really need to be in cities and in a walkable area. It is also true that people are willing to invest more in real estate because they are spending more time at home due to social distancing measures, restrictions set in place across Canada, and lockdowns. As experts note, there are currently two categories of buyers – the first is the worried buyer who believes that the pandemic is never going to end. The second group comprises all those who can do their job from anywhere and have already been working remotely for quite some time. There are other reasons for the recent price hikes, but the main one is that many people are rethinking and re-evaluating their lifestyle, as Vancouver realtor Faith Wilson notes. From shifting to digital and shopping online to changing family and travel plans and health and safety concerns, consumer behaviour is changing which has a significant impact on the real estate market. More people are buying waterfront and ski-hill properties but many are also opting for conventional homes in the countryside. As Royal LePage owner in East Kootenay Philip Jones notes, what they are looking for is raw land.

The ongoing pandemic is certainly driving the exodus to the countryside, with an increasing number of families reappraising urban living. The global health crisis turned the lives of many upside down, from working and schooling to shopping and travelling. Cities where many were born and spent their whole lives now feel like claustrophobic and dangerous places because of repeated lockdowns and tightening and easing of measures. This results in a growing uncertainty as to when and if this will ever going to end. For many, buying a cottage property is like having a place to walk around and breathe, somewhere you don’t stay locked day in and day out. People need more space as their homes have become so central to their lives, with many working, looking after children, exercising, and shopping from home. Cities have long attracted people for the fact that there is plenty to do and crowds of young people socializing. Closures and social distancing simply put socializing on hold. Other factors why people consider relocating to the countryside include distance from family and friends in their community, overcrowding in cities, and lack of gardens.

For others, living and working alongside people who are not following Covid-19 guidelines and social distancing rules is also a factor. There are people moving to the place they grew up to be close to family members and friends. High property prices in metropolitan areas are also forcing many out.

With lockdowns due to recurring outbreaks and waves, more and more people need to be closer to nature. The main reasons impacting purchasing decisions are wanting to have access to a garage or a parking space, to live closer to green spaces, have a pet-friendly home, live in a bigger home, and have a garden. The experience of lockdown in a thirty-story, 2-bedroom condo has made the decision to relocate much easier, especially for those who don’t even have a balcony. Young families with small children are also moving to the countryside to spend lockdowns in more specious properties and to avoid antisocial behaviour due to pandemic fatigue. This is also an option that many families with vulnerable members consider, including those with chronic conditions. Walking along empty streets in cities that look completely deserted feels depressing for many and is forcing them to escape to the countryside. People have all sorts of reasons to relocate, and many have already done that, driving up prices in the cottage country.

Top 6 Secured Credit Cards for Canadians

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Last updated on October 26th, 2020 to keep up with new developments in the secured credit card marketplace in Canada and update the card rankings.

Secured credit card is a card issued by a financial institution, which is backed by a security deposit. Sometimes these cards are known as “guaranteed credit cards”. Very often the application process ends with instant approval or denial of the borrower as everything is done online.

2020 has been a tough year for many and getting secured credit card in Canada is getting harder, because fewer and fewer financial institutions offer them. The financial products offered to Canadians with bad credit are far and few between, and this segment of the market is badly underserved. I get daily emails asking how to get a secured card, which one to get, which cards are easy to get, what credit score do you need to qualify for one, etc. My advice to you is to read the article below, read the many user comments talking about their experience in applying for a credit card secured by deposit, and make a decision based on your research.

My first credit card was with CIBC, and because I had no credit history I had to settle for a secured credit card. The card had $500 limit, which I had to deposit with the bank – not much of a credit card :). I used it for 2 years making small purchases and paying it off every month diligently, which helped me establish good credit history. While many of the big banks advertise financial products targeted at recent immigrants, and people who simply have no credit history yet, the fact is that getting even a secured credit card is much tougher nowadays in Canada. Even Peoples Trust out of British Columbia, which was a major player in the Canadian secured credit card space, decided to discontinue their card.

In the early 2000’s all major Canadian banks offered secured credit cards, but this is no longer the case. I haven’t seen a secured card advertised by a major Canadian financial institution for a while, and I know for a fact that Scotiabank and CIBC have no such products. Even if the rest of the big banks still have such cards on offer, they are not easy to find or their use is discouraged.

If you are in the market for secured card, you might also consider getting a unsecured credit card with low limit, which should be easier to get. You can try store credit cards like Canadian Tire Triangle MasterCard or Amazon.ca Rewards Mastercard for example. While not perfect these cards are somewhat easier to obtain, and with less and less financial institutions offering secured credit cards, it may be the right choice for you.

Find a solution to credit issues – get a secured credit card

People with bad credit usually apply for a secured card because they have a more limited choice, especially when it comes to specialty cards with attractive rates and terms. They are also offered to those who are new to credit as well as recent immigrants, newcomers, and students. Secured credit cards are available from unions, small and major banks, and other establishments and help consumers establish credit.

How Secured Credit Cards Work

Issuers require a cash deposit or security funds as a guarantee of on-time payment. It is usually equal to or larger than the limit offered. The only difference between secured and unsecured cards is the fact that security funds are required because financial institutions deal with high-risk borrowers who are more likely to default. Your credit card is backed by your deposit, hence the term “secured”. Other than that, holders can use the card to make payments online and in-store, to pay bills, and of course to build their credit.

Benefits for Users

The main benefit for users is that payments are reported regularly to major credit bureaus such as TransUnion and Experian. Customers who keep their balance low and make on-time payments gradually establish or reestablish credit. The timing of reports and the issuer’s reporting practices determine how long it takes before your card appears on your credit file.

What Is the Right Credit Card for You?

The choice of a secured card depends on whether you are a regular bank customer or a union member and other factors. When comparison shopping, look at the credit limit, grace period, and purchase and penalty interest. In general, whether a product is right for you depends on the issuer’s reporting practices. Some establishments report only missed and late payments while others report all payments and help build credit with time.

Who Is Eligible to Apply

Individuals with any credit profile qualify, from tarnished and fair to stellar. Legal residents and Canadian citizens of legal age are eligible to apply for secured credit card. You must be of the age of majority for the province or territory where you reside. Some major banks like TD even offer secured cards to customers who don’t have Canadian credit history, including international students and foreign nationals (temporary residents). The range of products available depends on different factors, including your credit rating and financial situation. When applying for a secured card, consumers are often asked about estimated monthly payments, including lines of credit, loans, mortgages, and other accounts. Financial institutions also request information about your rent or mortgage payments as well as income amount, employer, and sources of income. Many card issuers require that applicants have a verifiable permanent address in Canada and a verifiable source of income (i.e. proof of income).

Top 6 Secured Credit Card Picks

#1 – First Place
Refresh Secured Card Refresh Secured Card

This is a brand new secured card from Refresh Financial targeted at customers with bad or no credit, and people looking to build or re-build their credit. This secured Visa doesn’t require a credit check, so it should be very easy to get. Here are the main Refresh Secured Card features.

  • Credit limit: $200 to $10,000
  • Purchase Interest rate: 17.99 percent
  • Annual fee: CAD $48.95

apply

#2 – Second Place
Tangerine Money-Back Credit Cardsb

This is NOT a secured credit card but the advantage it has is a higher chance for approval compared to the Big Five banks. Customers earn unlimited rewards and can either redeem them into their savings accounts or add them to their card balance. The Tangerine Money-Back Credit Card has:

  • No annual fee
  • Interest Rate: 19.95%
  • 0.50% Money-Back Rewards on all your other everyday purchases.
  • 2 percent back on select purchases (categories of your choice).

apply

#3 – Third Place
No-Fee Scotiabank Value® VISA Cardsb

A yet another credit card by Scotiabank, this is a great solution to transfer existing balances, even though this is not a secured card. The introductory rate is just 3.99 percent and is in effect within 6 months of opening the account. The intro rate applies to credit card checks, balance transfers, and cash advances. The interest-free period is 21 days. Special discounts are offered, including car rental discounts. Optional credit card protection coverage is also available in the event of job loss, disability, or another unfortunate event.

  • Balance transfer fees: none
  • Interest rate: 16.99 percent
  • Annual fee: none

apply

#4 – Fourth Place
Home Trust Secured Visa CardHomeTrustSecuredVisaCard

Home Trust also offers a credit card that helps consumers to enhance their credit profile. Virtually everyone applying for a secured Visa gets approved, and there are two options available:

  • No annual fee with 19.99 percent interest rate
  • Annual fee of $59 with 14.9 percent interest rate

In addition to attractive terms and interest rate, this card goes with benefits such as the option to add an authorized user and a credit limit that can be as high as $10,000. The minimum limit is $500. This card can be used to book a vacation, make purchases online and over the phone, and access cash.

apply

#5 – Fifth Place
Vancity enviro Secured Visa

Vancity features a secured card with a deposit of just $500 and plenty of added and optional perks, including delay and lost baggage insurance, price protection, travel accident insurance, and others. This card is available to applicants who don’t have a previous Canadian credit history and to recent immigrants. There are different options to look into, for example, enviro Classic which is a good choice for customers who pay the full balance. This card helps borrowers to rebuild credit and is intended for customers who have experienced financial problems in the past.

  • Annual fee: none
  • Interest rate: 19.5 percent

#6 – Sixth Place
RBC Visa Classic Low Raterb

RBC features a low-cost card designed for customers who carry a balance. The card features optional and standard add-ons such as travel insurance and chip and PIN technology and can be used as a tool for debt consolidation to save on interest payments. Users are also offered additional cards with no annual fee. There is a card registration service for important documents and cards and auto payment service for ease and convenience.

  • Interest rate: 11.99 percent
  • Annual fee: $20

#7 – Seventh Place
Capital One® Guaranteed Secured MasterCard® guaranteed-secured-Cap-One

This card is ideal for individuals who need to establish credit history and goes with guaranteed approval. The credit limit varies and can be $300 or higher. The minimum security funds to deposit with the bank and access credit are in the amount of $75. Standard benefits that go with this card include referral to the closest ATM, zero liability, and others. Holders are free to make internet and in-store purchases, hotel reservations, car rental bookings, gas purchases, and more.

  • Purchase rate: 19.8 percent
  • Annual fee: $59
  • Grace period: min 25 days

#2 – Old Second Place
Peoples Trust Secured MasterCard®peoplestrust_card

This card is no longer available.

This secured card is a flexible solution designed for customers with limited or no credit exposure, new immigrants to Canada, students, and anyone looking to build credit. It is also ideal for borrowers with poor ratings such as discharged bankrupts and those with serious credit problems. Similar to standard cards, this MasterCard helps holders to improve their rating with time. Customers with a verifiable source of income qualify.

  • Credit limit: $500 or higher
  • Purchase Interest rate: 12.99 percent
  • Monthly fee: CAD $5.80
  • Interest rate on cash advances: 24.50 percent

Fees, Limits, and Rates

The interest rate varies by issuer and is usually around 20 percent. It is in effect once the account has been activated. The rate on balance transfers and cash advances can be the same or different. In general, the rate is slightly higher compared to unsecured cards because financial institutions take more risk. Many applicants have a history of missed or late payments, maxed out cards, defaults, foreclosure, and even bankruptcy. This is why fees and service charges are usually higher as well. At the same time, there are many banks that feature credit cards with no annual fee, including Scotiabank and TD Canada Trust.

The grace period also varies from 19 to 25 days and applies to regular bank transfers and new purchases. Secured cards have a zero-day grace period on special bank transfers and cash advances. The available limit and security funds required depend on your financial circumstances and can be as high as $10,000 and as low as $500. Some banks even offer cards with lower credit limits. If you plan to make large purchases (one-time and big-ticket items), it is better to choose a card with a larger limit provided that you make timely payments and pay at least the minimum before the deadline (grace period). The minimum payment can be $10 or 3 percent or fees plus interest but this depends on the card of choice. Make sure you check the minimum monthly payment, especially if you only pay the minimum.

Budgeting for Back to School

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The global pandemic has already transformed schooling in Canada and around the world. Boards, teachers, children, and parents prepare for a different school year during which they either stay home or attend classes every other day. Budgeting for back to school has also become important as many parents face financial hardship and challenging times ahead.

How Spending Patterns Have Changed

It does not come as a surprise that Canadian parents spend less on back-to-school supplies this year. A survey by the Retail Council of Canada shows that the percentage of shoppers who spent more than $0 dropped across different categories in 2020 – 81 percent for supplies compared to 86 percent in 2019, 69 percent for apparel compared to 78 percent, and 33 percent for books and movies, down from 35 percent. According to Suzan Krecsy, executive director of the St. Albert Food Bank, parents need about $1,000 to prepare kids for the new school year which is a lot of money for those who are unemployed or have low incomes.

Save Money on Back-to-School Supplies

A new Deloitte survey asked parents how much they would spend on supplies and other items that kids need in grade K-12 this year. On average, parents said that they would spend $316 on online subscriptions and electronic gadgets, $395 on hardware and computers, $216 on clothing and apparel, and $102 on supplies. This is a lot of money. On top of this, parents are stocking on wide-mouth water bottles, facemasks, hand sanitizers, and other items they would have never thought of buying before the pandemic.

Obviously, supplies can be expensive when all purchases add up, from new uniforms and clothes to pencils, erasers, highlighters, and index cards. Shopping out of season is one way to save money as once the new school year starts, retail stores discount all the folders, notebooks, pencil sharpeners, and markers.

To save money on back-to-school supplies, it also pays to shop around, check flyers, use coupons, and make a list of stores to visit and benefit from the best deals they have on offer. Sales are also posted daily online.

If your children need big-ticket items such as a laptop or tablet to do their homework, it also pays to ask the principal if they have a budget for this or electronics that you can borrow. If this is not the case, visit stores that advertise educational discounts or offer refurbished devices.

 Include Your Kids in Back to School Budget Planning

Ask your children to go through what they have from last year as some items can be reused, whether markers, erasers, or pencil cases. Sit together and make a list of all the items they will need, depending on age and grade. In kindergarten, for example, your kids will need things like glue sticks, colored pencils, crayons, and assorted construction paper. Children in grades 1 – 3 use index cards, rulers, pencil grips, pencils, and washable markers. The list is quite long for students in high school and middle school. They need graph paper, loose-leaf paper, highlighters, plastic folders, book socks, etc. Go through all the items that you have at home to find out if they can be reused. If you have children in different grades, you probably have plenty of stuff that younger kids can reuse.

Asking children what they find important can also save a lot of money. They might be more than happy to reuse their backpack or lunch box from last year. This is also a good way to teach them how to budget and handle money. Learning about budgeting, spending, and saving early in life helps children to make informed financial decisions later on. They have the skills for successful financial interactions.

Teach Kids to Manage Finances

Involving children in back-to-school shopping is also a good way to teach them how to manage personal finances. Many Canadians lost their jobs and live with uncertainty but this is not the main lesson that you want to teach your children. Making responsible choices and spending decisions is the lesson that you would like to stick with school-aged children. This is also a way to encourage kids to distinguish between wants and needs.

Teaching children to manage finances also helps them to learn how to delay gratification and wait to buy the things they want. In fact, this concept is difficult not only for kids but for grown-ups of all ages. It pays to start early, and back-to-school shopping definitely helps parents teach kids important money lessons. When going to the store together, only pick things that you have on your list. This helps children learn not to buy things for the sake of buying which is basically splurging. When going to a store to buy a gift for someone, tell your kids that you are not there to buy things that they just spotted but only that gift.

Other ways to teach children about finances are to ask them to set goals, create sharing, spending, and saving jars, and involve children in money decisions and your family budget. Always tell them how much you have for leisure activities and entertainment, be it board games, toys, movies, or anything else. You can also try to come up with a family goal that they like and keep track of how close you are to achieving this goal. You may want to create a progress chart and ask kids to color in so that you can all check where you stand.

Save for Your Child’s Postsecondary Education

Budgeting for back to school also helps save for university or college, provided that you plan to fund your child’s postsecondary education. Unless you run a successful business or are really well paid, you have to give up on something, be it your retirement savings or things that are not worth splurging on. Saving on supplies can also help fund college education, especially if done on a year-to-year basis. To this, it is a good idea to create a back to school budget and compare what you spend and save each year. The first step is to list all essential items and decide what you can buy later and what is a must. You can buy non-essential items when you find good deals /for example, off season/. Next, you should check how much money you have. Add up your monthly income and expenses such as utility bills, rent, grocery shopping, loan and credit card balances, etc. Look at how much you have left after you deduct all expenses and compare this figure to the total cost of school supplies on your list. This will show you whether you might have to put any items on your credit card. If so, go through your shopping list once again to decide which items are must-haves. If you need extra money to buy back-to-school supplies, this shows that you might have to start saving for next year early on.

Top 6 Credit Cards for Bad Credit in Canada 2020

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This post has been updated on August 20th, 2020 to keep up with recent developments in the Canadian financial and credit markets due to the COVID-19 pandemic.

Even before the pandemic hit many Canadians have been struggling with colossal debt levels, and the current health/economic crisis have made things worse. For Canadians with bad credit borrowing on a credit card has been the go-to solution, but banks and smaller lenders are becoming very selective whom they extend credit to. Credit cards are getting harder to get, and depending on how bad the economic situation gets it might be close to impossible to get one with bad credit.

Accessing credit is never easy if you have anything but pristine credit score. The most common form of borrowing of course is a credit card, and there are many Canadian financial institutions that offer variety of cards targeted at different market segments. The bad credit credit card market in Canada is really under-served with many of the big players withdrawing their financial products including Peoples Trust who stopped offering their secured credit card, and Affirm financial who also no longer offer their credit cards for bad credit. Home Trust still offer a secured credit card, but they are very picky and getting one from them is not an easy task. Still there is hope for Canadian consumers with bad credit, as a new player called Refresh Financial has entered the secured/bad credit card marketplace. Refresh offer credit cards for borrowers with bad credit, and the good news is they do not do a credit check. The card is relatively easy to qualify for, however keep in mind that this is a secured card, and you will have to come up with the deposit to get one. As the credit conditions get tighter in Canada it will get harder to get a credit card if you have a poor credit, however don’t get discouraged – just check our list of card below and use it as a starting point in your quest for credit card. * It should be noted that some clients reported that credit checks have been done.

There are different options for customers with poor credit, from payday loans and cash advances to secured lines and credit cards for bad credit.

Do You Need a Credit Card if You Already Have Bad Credit?

This depends on your lifestyle, financial literacy, and spending habits but a credit card can actually help build a healthy score. Timely payments allow users to rebuild credit. If you often make financial blunders and are knee-deep in debt, you may want to learn more about credit first.

Can You Get a Credit Card with Bad Credit?

Some lenders offer cards to borrowers with poor and average credit. They often offer cards with a lower limit and higher interest rates because they are considered to be high risk.

Does a Credit Card Help You Rebuild Bad Credit? Secured Credit Cards Explained

A credit card is a useful tool to reestablish credit unless you make late payments. Missed payments also affect your score. Avoid prepaid cards because payments are not reported to the major bureaus. Other cards, including secured and department store cards, help build credit. To get a secured card, clients are asked to make a deposit which is higher or equal to the card’s limit.

Types of Credit Cards for Bad Credit

Secured Credit Cards

securedSecured cards offer many benefits, and one is that it is easier to get approved compared to standard credit cards and unsecured loans. The reason is that financial establishments take no risk. Cardholders use their own money (the deposit made) to make purchases. Lenders will not return the deposit in case of default. They refund the deposit made when the customer decides to close the account. The payments are usually reflected in the borrower’s credit report. The limit normally varies from $200 – $500 to $5,000. Many issuers advertise low annual fees in the range of $10 – $30.

Low Interest Credit Cards

Low interest cards are offered by major unions, banks, finance companies, and online lending services. The main benefit for users is that they save on interest charges. Some issuers offer low interest cards to borrowers with less-than-perfect credit and feature perks such as gas rewards, cash back, payment alerts, and others. The credit line is usually lower, for example, $500 – $1,000, but some companies advertise opportunities for line increases provided that cardholders make timely payments. It is important to ask whether payments are reported to TransUnion or Equifax on a regular basis.

Guaranteed Credit Cards

Guaranteed approval cards by MasterCard and Visa are also offered to borrowers with less than perfect and tarnished credit. While some issuers advertise guaranteed or instant approval, they offer secured versions whereby the deposit serves as a guarantee of timely payments. They are available to consumers who need credit improvement and feature standard benefits such as price protection, travel assistance, baggage delay coverage, and others. Basically, issuers that offer guaranteed cards have more lenient or minimum requirements for approval. They may advertise no employment or credit checks and no application or processing fees.

Prepaid Credit Cards

LOCPrepaid cards allow users to make purchases and payments but are not the best solution for rebuilding credit. Payments are usually not reported. Still this is one option for customers with bad credit and a history of consumer proposals, foreclosure, bankruptcy, and seriously delinquent accounts. There are different reload options, including in person, online, and through direct deposit. Some issuers advertise no-fee cash withdrawals. Prepaid cards also feature online bill pay options, balance alerts, free ATM withdrawals, business and payroll programs, refer-a-friend bonuses, and other benefits. Many issuers advertise no activation or application fees, free online banking, online statements, and free direct deposits.

Store Credit Cards

A department store card is yet another option for borrowers with bad credit and offers plenty of added benefits. Cardholders benefit from perks such as promos and discounts, sales, savings on major or one-time purchases, coupons, and other benefits. Some department stores even advertise interest-free financing. Holders enjoy a zero introductory rate for a certain period, for example, six months. However, department store cards usually go with higher charges than secured and standard credit cards. While the rate is slightly higher, this is one option for applicants with a thin credit file and borrowers who need a credit boost.

Where Can You Find Credit Card Lenders for People with Bad Credit?

Major financial establishments such as RBC, BMO, and other big banks offer cards for bad credit.

Affirm MasterCard®

This card is no longer available.

Affirm Financial Services specializes in providing credit solutions for Canadians who may have difficulty obtaining a credit card or loan from traditional financial institutions. Here are the most important Affirm MasterCard® features:

  • True credit – no security deposit required
  • Credit limit up to $3,000
  • Use it anywhere MasterCard® cards are accepted
  • Fixed interest rate – 29.99% for homeowners and 34.99% for non-homeowners
  • Reports to credit bureaus every month

This card is issued by Peoples Trust Company pursuant to license by MasterCard® International Incorporated. MasterCard® and MasterCard® Brand Mark are registered trademarks of MasterCard® International Incorporated.

No-Fee Scotiabank Value® Visa Card

sbThe Bank of Nova Scotia features the No-Fee Scotiabank Value Visa Card which is available to debt-ridden borrowers with credit problems. The bank offers benefits such as card protection, an introductory rate of 3.99 percent, and car rental discounts. Additional benefits include itemized transactions and supplementary cards. The introductory rate applies to balance transfers and cash advances, which makes it a great choice if you plan to transfer high-interest balances to a low-interest card. The low introductory rate helps borrowers to pay down existing balances faster and get rid of debt.

• Interest rate: 16.99 percent
• Annual fee: zero
• Credit limit: $500 or more

apply

Refresh Secured CardRefresh Secured Card

This secured card is a new product from Refresh Financial targeted at customers with low credit score or no credit. The card can be used to re-build credit score, and as it doesn’t require a credit check, it may be your best chance for getting a credit card. Here are the main Refresh secured card features.

  • Credit limit: $200 to $10,000
  • Purchase Interest rate: 17.99 percent
  • Annual fee: CAD $48.95

apply

Peoples Trust Secured MasterCard®peoplestrust_card

This card is no longer available.

Peoples Trust Secured MasterCard is ideal for those who are new to credit, consumers with credit problems, new immigrants, and students. Holders can use it just like a regular card to make hotel bookings and everyday purchases, car rentals, online purchases, and anything else. This card also allows consumers to make cash advances and build credit over time. Peoples Trust advertises almost guaranteed approval, regardless of credit profile.

  • Minimum deposit: $500
  • Interest rate: 12.99 percent
  • Monthly fee: CAD $5.80
  • Monthly fee (additional cards): CAD $2.95

Home Trust Secured Visa Card

The Home Trust Secured Visa Card is another option that requires a security deposit of at least $500. The limit is based on the deposit made and ranges from $500 to $10,000. There is a low-rate option that goes with an interest rate of 14.9 percent. The standard rate is 19.99 percent and there is no annual fee. The low-rate option goes with a fee of $59. This card is offered to consumers with bad credit and everyone gets approved. If you have less than perfect or poor credit, this card will help you to build or reestablish your credit history. You can use it to book a hotel room, make purchases online and by phone, pay bills, pay for gas, and more.

Apply Now 14.90% $59 annual fee or $5 per monthApply Now 19.99% No annual fee

BMO® Preferred Rate MasterCard®

bmThe BMO Preferred Rate MasterCard is a card advertised with no annual fee and an interest rate of 17.5 percent. The card also features a long interest-free period of 21 days. While applicants with bad credit get approved, those with a history of bankruptcies do not qualify. If you have filed for bankruptcy over the last 7 years, your application will be declined. BMO also requires employment and income information. Customers are offered perks and benefits such as:

• Low-rate options (11.9 percent)
• Travel benefits
• Purchase protection
• Extended warranty
• Roadside assistance
• Medical protection
• Trip cancellation coverage

Capital One® Guaranteed Secured MasterCard®

CapThe Capital One Guaranteed Secured MasterCard, for example, features guaranteed approval and a limit of $300 or higher. It is a good choice for customers with no credit and tarnished credit. The good thing about this card is that you can use it like a standard card – to make bookings, for car rentals, online purchases, in-store purchases, and more. Capital One features standard benefits such as emergency cash advances and card replacement and zero liability.

• Interest rate: 19.8 percent
• Annual fee: $59

TD Emerald Visa Card

The TD Emerald Visa Card is also a good choice for bad credit borrowers and goes with benefits such as:td

• Low annual fee of $25
• Security and purchasing convenience
• Automotive benefits
• Travel benefits
• Medical insurance

Applicants are allowed to add up to three cardholders. The card goes with a competitive variable rate of 12.75 percent and is a great option for borrowers with bad credit, students, and newcomers to Canada. Cardholders are offered trip interruption coverage, trip cancellation insurance, car rental discounts, and other perks. TD Emerald Visa is also advertised as a balance transfer card for debt consolidation.

RBC Visa Classic Low Rate

rbThe RBC Visa Classic Low Rate is yet another card with a low interest rate of 11.99 percent and an annual fee of $20. Additional cards are available at no added cost. This option is a great choice for those considering debt consolidation. Major benefits include free travelers checks, worldwide acceptance, easy application, and others. Optional travel insurance is also available to protect customers in case of loss of job or illness. Customers benefit from autopayment options, cash advances, and quick application processing. This card is also an excellent choice for debt consolidation. You can use it to make one-time or larger purchases.

What to Do Next?

Once you have been approved for a low rate, department store, or secured card, it is time to learn how to manage credit responsibly. This means timely and regular payments to avoid penalty fees and charges. Late and missing payments also affect your score and chances to get approved for low-cost unsecured loans, LOCs, and premium credit cards. Avoid using multiple cards because it is more difficult to keep track of due dates, payments, and other details. Check your financial statements regularly to track your spending and payments. Using online banking is a great way to view your statements, payment history, and transactions. Make sure you check your credit report for mistakes and omissions. Consumers are entitled to receive a free report once a year.

If you have other balances, try to pay down your auto, consumer, and other loan balances to boost your score. The goal is to maintain a debt to income ratio of 30 percent or lower. Paying down small balances on different cards helps improve your score. Pick one or two cards with affordable rates and use them for payments and purchases.

Keep in mind that credit cards are intended for regular, small purchases and unexpected expenses, for example, utility and medical bills, auto insurance, plumbing and electrical problems, car repairs, and others. You can use your card for grocery shopping, bill payment, trips to the ER, car maintenance, vehicle registration fees, and other small expenses. It makes no sense to buy big-ticket items on a credit card. It is better to use a low-cost unsecured loan instead. Otherwise, you will end up paying a huge balance, and your score may suffer as a result.

If you have poor credit and find it difficult to manage your finances, you may want to contact a credit counseling service. They offer financial education to teach borrowers how to manage debt responsibly. The goal is to gain financial stability and control and make sound credit and borrowing decisions. Specialists negotiate with creditors, help customers to calculate their debt to income ratio, sort out their finances, and more.

Choosing a Credit Card That Is Right for You

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Most people who apply for a credit card use it for a long time, whether to pay for small purchases or big-ticket items. Some customers never switch between issuers while others use their card for years, making the choice of a provider and product an important one. When comparison shopping, the most important factors include your spending habits, credit history, whether you tend to carry a balance, and if you are going to use it to pay personal or business expenses.

Spending Habits

If you usually pay your balance in full and want to collect loyalty or rewards points, then a rewards or cashback card is a good choice. Many issuers offer bonus points across categories such as business-related spending, dining, grocery shopping, gas, and travel purchases. If you are travelling a lot for work or leisure, for example, you may want to look into different travel rewards cards. Scotiabank PassportTM Visa Infinite, for instance, offers users 2 points per $1 on transit, entertainment, dining, and groceries and 1 point per $1 on all other purchases. Spending $1,000 during the first three months earns 30,000 travel rewards points worth $300. Added benefits include car rental discounts, no foreign transaction fees, and complimentary lounge access.

If this is your first card, a cashback credit card is a better option as money back offers are easier to understand than airmile, hotel, and travel rewards. The BMO Cashback MasterCard is one product to look into if groceries make a large chunk of your spending. BMO offers 3 percent back on groceries, 1 percent on utility bills, and 0.5 percent on other eligible purchases. The TD Cash Back Visa Infinite is another good card for household spending if you have a personal income of $60,000 or higher. All purchases earn 10 percent back during the first 3 months and 1 percent after the introductory period. Added perks include concierge service, travel medical insurance, and emergency road services.

Bad Credit

If you wish to improve your credit, then you may want to choose a secure credit card. Refresh Secured Card is one option to consider as it comes with a low deposit of just $200 and an annual fee of $48. All payments are reported to the major credit bureaus to help customers improve their score provided that they make timely payments. The Home Trust Secured Visa is another card for persons with poor and bad credit, and the best part is that they don’t have minimum income requirements. It works just like a regular card, with payments reported to both TransUnion and Equifax. Customers are free to choose between low interest or no annual fee and a limit of up to $10,000.

Low Interest

If you only pay the minimum and want to save on interest charges, then choosing a low interest card is a smart move. MBNA True Line comes with the lowest rate by far – just 8.99 percent on access cheques, balance transfers, and regular purchases. Not only this, but MBNA offers trip assistance, emergency services, car rental discounts, and zero interest rate on balance transfers that are made during the first 10 months. Desjardins Modulo Visa also comes with a low rate of 10.9 percent, rewards scheme, travel insurance, and insurance for tablets, smartphones, and mobile phones. All purchases earn 1 percent, and rewards can be redeemed for travel, show tickets, and gift cards and rewards such as small and major appliances, pet accessories, robotics, drones, and toys, and more. Points can also be exchanged for savings products, insurance, service fees, TFSA, RESP, and RRSP, and other financial products.

Students

If you are enrolled in college or university, then applying for a student credit card is a smart move. This is a good way to build your credit history provided that you make regular payments. Some issuers also offer cash back and rewards that help cover food, textbooks, and bills. A good starter card would be the Scotiabank Scene Visa as it comes with no annual fee, discounts on car rentals, and supplementary cards. The best part is that customers earn 5 bonus points per dollar spent at Cineplex.com and Cineplex theatres. The Scotiabank Scene Visa won the CreditcardGenius People’s Choice award in 2020 and is ideal for students with no credit history.

Balance Transfers

This is a good choice for borrowers with high interest credit cards so that they benefit from low promotional rates. Some issuers also offer to wave fees on balance transfers and feature cashback and rewards schemes. Others offer products with low introductory and standard purchase rates, the BMO® Preferred Rate MasterCard® being one example. Customers benefit from a low introductory rate of 3.99 percent and a standard rate of just 12.99 percent on purchases and cash advances. Users who have a Performance Plan with their checking account are also offered a $20 annual fee rebate. Another card with low intro and standard rates is the MBNA True Line® Gold Mastercard, featuring a zero balance transfer rate over a period of 6 months. The standard purchase rate is just 8.99 percent. Up to 9 users can be added free of charge. MBNA also offers emergency services, trip assistance, and Budget and Avis car rental discounts. Some balance transfer cards also offer money back, rewards points, insurance coverage, and other incentives. The Tangerine World Mastercard® comes with a low promotional rate of 1.95 percent, mobile device insurance, and 2 percent money back. Customers can choose 2 categories to get money back, and featured categories include public transportation and parking, entertainment, recurring bill payments, restaurants, and furniture.

Business Owners

If you run a business, you may want to get a business card to build credit for your company. The main benefits for customers include simple expense management, larger credit limits, and control over employee spending. The choice of a card depends on whether you travel often, wish to save on interest charges or annual fees, or are looking for a comprehensive insurance package. The card that offers the largest welcome bonus by far is the Marriott Bonvoy Business American Express® Card. Holders are offered 50,000 welcome rewards points worth 3 hotel nights and 3 points per dollar on travel, dining, and gas purchases. Points can be redeemed toward nights at luxury hotels such as Westin, Sheraton, Four Points, and The Luxury Collection. Holders can also redeem points for pro golf clinics, backstage concert passes, meet and greets with famous athletes and artists, and airfare. Another card that offers a generous welcome bonus of 42,000 rewards points is the American Express Business Edge Card. Customers earn 3X points on business-related purchases such as gas, rides, electronics, and office supplies. The fact that American Express offers comprehensive purchase, travel, and business insurance is an added benefit. The coverage includes a buyer’s assistance protection plan, car rental damage and theft insurance, and employee card misuse protection. Added incentives for members are special experiences and offers and front of the line e-updates, reserved tickets, and advance access.

Surviving the Economic and Financial Impact of COVID-19

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The coronavirus pandemic has seriously hit the Canadian economy, especially in provinces such as Alberta, Ontario, and British Columbia where hundreds of thousands of jobs were lost. Rising unemployment is mainly the result of many industries being severely affected, from travel and transportation and recreation and entertainment to food and beverage services and accommodation. Rising unemployment has also resulted in a significant drop in car, retail, and home sales, and recent reports show that home prices are expected to drop by up to 5 percent due to the pandemic. Restaurants, gyms, sports facilities, and movie theatres are closed, with people being ordered to stay home. The drop in crude oil prices hit a blow on Newfoundland and Labrador and Alberta as they mainly rely on oil exports. This is largely due to travel restrictions, lockdowns, and stay-at-home orders which resulted in reduced oil demand across the world. Alberta’s major oil exporter Western Canadian Select hit a record low of less than $4, and experts warn that this usually happens during depression. University of Saskatchewan Professor Greg Poelzer explained, however, that for oil producers it is cheaper to reduce oil prices than to shut down and restart operations.covid-19Many Canadians who lost their jobs struggle with debt, whether mortgage, personal, or car loans, lines of credit, or credit card debt. Some complain that big banks refuse to defer payments on mortgages that are new. And while in most cases big banks are willing to work with customers and defer payments for 6 months, some finance companies and other non-bank lenders offer payment deferrals of up to 3 months. And while the pandemic has a devastating effect on Canada’s economy and many struggle to keep their finances afloat, there are some things to do even during turbulent times. To deal with unmanageable debt during the COVID-19 crisis, a consolidation loan can help save on interest payments. In the coronavirus aftermath, it is important to rebuild credit to get access to a range of borrowing solutions with flexible repayment terms and attractive rates.

Dealing with Unmanageable Debt – Apply for a Consolidation Loan

Applying for a debt consolidation loan is one option for Canadians paying high interest rates on personal loans and credit cards. Many financial institutions in Canada offer consolidation loans to help borrowers repay multiple debts provided that they are eligible. These include utilities, lines of credit, credit cards, and personal loans. Mortgages are one exception. The main benefits for customers include lower monthly payments and interest rate and a single payment. What is more, the borrower’s credit score is not affected. RBC, for example, offers consolidation loans and lines of credit to help customers repay outstanding balances faster. Those who choose to leverage their home equity are offered a lower interest rate. Customers who opt for a line of credit are free to access cash at any time, and they pay no annual fee. Borrowers who apply for a personal loan can choose a term of up to 5 years to lock in their rate.face mask

Another option to avoid high payday loan fees and credit card rates is to apply for a consolidation loan offered by Consolidated Credit. Customers can consolidate their existing card balances by moving them to a balance transfer account. One of the main benefits for borrowers is that they are offered a customized debt management plan that comes with reduced interest charges. Being a non-for-profit charity, Consolidated Credit Counseling Services of Canada works with customers to help them solve their financial problems and deal with debt. The goal is to help Canadians pay off their debts faster through debt management and credit counseling. The charity offers education, counseling, and consolidation. Customers benefit from a variety of educational resources with a focus on credit rating and the factors that affect it, household budgeting, and money management. Their debt management program allows borrowers to get rid of debt while credit counseling helps pay off outstanding card balances and take control of personal finances. Financial advisors examine customers’ budgets to offer advice on how to get more organized and manage money.

How to Rebuild Credit in the COVID-19 Aftermath

If your credit score suffered during the pandemic, there are different ways to rebuild it to access a pool of attractive borrowing solutions. One option is to apply for a secured credit card and another is to get a credit builder loan.

Applying for a Secured Credit Card

Secured cards offer many benefits, one being that financial institutions report to the main credit bureaus. The fact that account history is reflected in the report means that timely payments help rebuild credit. Some issuers offer additional benefits such as cash back, no annual fee, and no limit on rewards that can be earned. The Refresh Secured Card is one option to rebuild credit and benefit from a low annual fee. Customers’ account history is reported to Equifax and TransUnion on a monthly basis, thus allowing them to improve their score. Approval is guaranteed, and customers are only asked to provide a valid government ID. Refresh takes into account factors such as budget, expenses, income, financial goals, score, and location but they do not run a credit check. Customers are offered a low annual fee of $48.95, and the interest rate is just 17.99 percent.

Applying for a Credit Builder Loan

This is also a good option for persons who are rebuilding credit or are looking to establish one. Credit builder loans are offered by unions, financial companies, and smaller loan providers. Upon approval, the borrowed amount is deposited in a savings account over a specified period and is returned after the loan amount has been repaid in full. Payments are reported to the credit bureaus.

There are many options to choose from, but if you are looking for a loan that helps you to rebuild credit and make approval for low-rate solutions more likely, check the credit builder loan offered by Refresh Financial. This is also a good solution for Canadians who have filed a consumer proposal or declared bankruptcy. It comes with an interest rate of 19.99 percent and there are no admin fees – you start building your equity, and credit score from day one. Customers also have access to a paid referral program and education. It is easy to make payments as they are scheduled on the borrower’s account. However, it is important to make timely payments to ensure that the account is in good standing. There is also an option to change the payment date as to avoid missed or late payments. Early repayment is an added benefit meaning that the outstanding balance can be repaid at any time. Refresh Financial also offers perks such as credit simulator, score updates, and discounts on wellness, entertainment, travel, and shopping. The Refresh Academy features templates, quizzes, and video courses that help customers to improve their financial literacy.

Best Rewards Credit Cards in Canada for 2020

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Rewards credit cards offer frequent flyer points and merchandise discounts to encourage frequent use. By maximizing points, users benefit from affordable airfare, hotel room benefits, and exclusive dining and shopping experiences.

Overview of Rewards Credit Cards

Customers who use rewards cards are offered miles or points for each purchase they charge to the card. Points can be redeemed for hotel or motel stays, free flights, entertainment, brand and select product purchases, and gift cards and vouchers.  Points can also be exchanged for specialized services, charity donations, classes and training, and recurring bill payments. Some banks feature a catalogue with a range of products to choose from, including movie tickets, spa and wellness, travel merchandise, accessories, and clothing. Sign-up bonuses are also offered to encourage spending.

Best Rewards Cards Overall

The best cards offer customers the choice to exchange points or miles for a number of options. These include catalogue merchandise, discounts on hotel bookings, cruises, and vacation packages, and statement credits. Cardholders also benefit from transferable points that can be transferred to hotel loyalty programs, airlines, and other partners.

Scotiabank Gold American Express® Card

One of the top cards to earn extra points is the Scotiabank Gold American Express® Card, featuring access to exclusive events and special offers, supplementary cards, and comprehensive insurance coverage. Holders earn 1 point for each dollar spent on daily purchases, 3x points on select streaming services, transit, and gas, and 5x points on dining, groceries, and entertainment. Extra points are offered for theatre and movie tickets, food subscription and delivery, fast food, and restaurant purchases. The card also comes with comprehensive insurance package, including travel accident, lost and delayed baggage, and flight delay insurance. The first $1,000 spent on everyday purchases earn 20,000 points. Added perks include no foreign transaction fees, front of the line tickets, and airport lounge access.

Eligibility criteria:

  • Minimum personal income required: $12,000
  • Interest Rate: 19.99%
  • Have not filed for bankruptcy: 7 years
  • Annual fee: $120

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Best No Fee Rewards Card

No fee cards are great in that they combine two perks – no annual fees and frequent flyer or rewards points. This helps customers save on fees while earning money in the form of points. Common benefits also include travel and return protection, complimentary memberships, travel assistance services, and low introductory interest rates.

Tangerine Money-Back Credit Card

A great card to save on annual fees, the Tangerine Money-Back Credit Card also features unlimited money-back rewards that are paid on a monthly basis. Customers earn unlimited rewards and can either redeem them into their savings accounts or add them to their card balance. Holders earn 2 percent cash back across different categories such as entertainment, home improvement, drug store purchases, and parking and public transportation. While everyday purchases earn 0.5 cash back, recurring bill payments and gas, restaurant, and furniture purchases earn 2 percent money back. Additional perks include free supplementary cards, promotional balance transfer rate.

Eligibility criteria:

  • Annual income: $12,000 or higher
  • Interest Rate: 19.95%
  • Have not declared bankruptcy: 7 years
  • Annual fee: none

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Best Cashback Card

Cashback cards offer money back on everyday spending and feature shopping perks, entertainment benefits, and sign-up bonuses. The main types are rotating bonus category, tiered cashback, and flat-rate cashback. Rotating bonus category cards offer extra rewards for spending in select categories that change quarterly. Examples of bonus categories include dining, groceries, and gas. Keeping track of the cashback calendar helps maximize rewards.

Scotia Momentum® Visa Infinite

This Scotiabank rewards credit card with extra cash back, the Scotia Momentum® Visa Infinite has the most awards in 2019. Customers earn 1 percent back on daily purchases, 2 percent on transit and gas, and 4 percent on subscription services, recurring bill payments, and grocery store purchases. Two percent back is offered on rideshare, trains, taxis, and buses. Customers earn 4 percent back on subscription payments such as lifestyle boxes, music and video streaming, and meal kit delivery. They also earn 4 percent back on bill payments such as gym memberships, utility bills, and insurance premiums. Supplementary cards are also available.

Added benefits include hotel room upgrades, guaranteed best available rates, complimentary concierge service, and car rental discounts. The card also comes with comprehensive insurance coverage, including flight delay, travel emergency and new mobile device insurance.

Eligibility criteria:

  • Household income: $100,000 or higher
  • Annual income: $60,000 or higher
  • Interest Rate: 20.99%
  • Annual fee: $120

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Best Travel Rewards Card

The best cards that come with rewards allow holders to redeem points for travel, shopping, and cash and often feature rotating cashback categories. Added incentives include extra points, annual travel credit, sign-up bonuses, and no earning caps or redemption limitations.

Scotiabank Passport™ Visa Infinite* Card

As one of the best rewards credit cards to earn bonus points, the Scotiabank Passport™ Visa Infinite* Card offers generous complimentary bonuses. Customers earn 10,000 rewards points when they spend $40,000 or more on an annual basis. Cardholders earn double points for entertainment, dining, grocery purchases, and daily transit. Transit purchases include taxis, subways, and buses. There is an option to add supplementary cards to maximize rewards. Added benefits for users include airport lounge access, no foreign transaction fees, and Avis Preferred Plus Membership. The card also comes with comprehensive insurance package, featuring travel accident, flight delay, travel emergency medical, and other types of insurance.

Eligibility criteria:

  • Annual fee: $139
  • Minimum personal income: $60,000
  • Minimum household income: $100,000
  • Interest Rate: 19.99%
  • Have not declared bankruptcy: 7 years

Best Store Card

A store card is a good choice for customers with little or no credit exposure and those who need to rebuild their credit history. This enables borrowers to access more affordable credit solutions. Store cards come with additional benefits such as free shipping, discounts at stores, cafes, and restaurants, and free item returns.

PC Financial World Elite MasterCard

The PC Financial World Elite MasterCard is one such store card that comes with no annual fee and features standard and optional benefits. Customers earn 45 points per $1 when shopping at Shoppers Drug Mart and 30 points at PC Travel, Esso, and Mobil. All other purchases earn 10 points per $1. PC Financial also offers an easy to use rewards calculator to help cardholders calculate points across different categories. Spending categories include groceries, travel, gas, and health expenses. Holders who spend $500 on travel, for example, earn 180,000 PC Optimum points worth $180. Optional extras that come with this card include victim assistance, credit education, and daily surveillance and monitoring. Customers are also offered concierge service, identity theft assistance, travel emergency medical insurance, and more.

Eligibility criteria:

  • Minimum household income: $150,000
  • Minimum personal income: $80,000
  • Interest Rate: 19.97%
  • Annual fee: None

Best Card for Groceries

Grocery credit cards offer generous cash back on grocery store purchases and are thus ideal for big and frequent shoppers. Many cards also feature cash back on gas purchases, utility bills, and other expenses. Some cards come with rotating categories while others offer multiple rewards rates or flat rates. Co-branded cards are also available as to allow customers to earn extra points or cash back at select stores.

Triangle World Elite MasterCard by Canadian Tire

One of the best cards offering rewards, the Triangle World Elite MasterCard by Canadian Tire offers customers access to personalized offers and member-only events. Holders earn 4 percent back at participating retailers, including SportChek, Hockey Experts, Sports Rousseau, Atmosphere, and Canadian Tire. Spend and collect bonuses are also available at select retailers such as L’Entrepôt du Hockey, Sports Rousseau, Canadian Tire, and others. Cardholders also earn 7 cents per litre in CT Money at Husky and Canadian Tire Gas+. In addition, they are offered perks and incentives such as no interest financing, concierge service, and roadside assistance. The Triangle App helps cardholders to organize their finances and keep track of purchases and weekly exclusive offers. The card also comes with car rental loss damage/collision waiver and priority queuing.

Eligibility criteria:

  • Minimum income: $80,000
  • Annual Fee: None
  • Interest Rate: 19.99%

The best rewards credit cards offer multiple benefits such as points and cash, annual fee waivers, comprehensive insurance, and access to exclusive events and loyalty programs. Customers also benefit from one-time bonuses, unlimited cashback or points on grocery store, dining, and other purchases, and VIP status. Bonus points are also offered after the card member anniversary. The best cards with rewards also come with no category restrictions, seat restrictions, and blackout dates when promotions or discounts are no longer available.

Most issuers have minimum income requirements to ensure that customers have sufficient income to make regular payments. Persons with higher incomes are also more likely to be big shoppers who regularly charge purchases on points cards.

Top 12 Best Credit Cards in Canada for 2020

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This post has been updated on February 27th, 2020 with our most recent reviews and rankings of popular credit cards offered to Canadian consumers.

The best credit cards offered by Canadian finance companies, unions, and banks feature money back, airmiles and bonus points, comprehensive insurance coverage, no or low foreign transaction fees, and plenty more.

 Credit CardInterest RateAnnual FeeType 
1. Scotia Momentum Visa Infinite20.99 %$120Cashback Credit Card
2.SimplyCash American Express19.99 %No annual feeCashback Credit Card
3.Tangerine Money-Back Credit Card19.95%No annual feeCashback Credit Card
4.Scotiabank Gold American Express19.99 %$120Travel Credit Card
5.BMO World Elite MasterCard19.99 %$150Travel Credit Card
6.Home Trust Preferred Visa19.99 %No annual feeNo Foreign Transaction Fees
7.Rogers Platinum MasterCard19.99 %No annual feeNo Foreign Transaction Fees
8.Scotiabank Platinum American Express19.99 %$399.00Insurance Coverage
9.BMO Cashback World Elite MasterCard19.99 %$120Insurance Coverage
10.Scotiabank L’earn Visa Card19.99 %No annual feeStudent Credit Card
11.Scotiabank Scene Visa Card19.99 %No annual feeStudent Credit Card
12.Refresh Financial Secured Card17.99 %$48.95Secured Card

Best Canadian Cashback Credit Cards

There are credit cards that feature extra cash back during the promotional period as well as no annual fee, generous welcome bonuses, and no categories or limits.

1. Scotia Momentum® Visa Infinite Card

Offered by the Bank of Nova Scotia, the Scotia Momentum Visa Infinite Card, for example, goes with 4 percent cash back on groceries and gas. The card also features concierge service, travel accident insurance, flight delay insurance, car rental discounts, and a lot more. Optional protection is also offered in case of critical illness, lockout, strike, job loss, or disability. Customers with no credit history are welcome to apply.  However, there is a minimum income requirement of $60,000 a year. Supplementary cards are available to earn more cash back.

There are plenty of added benefits for holders. They are offered discounts on wine, vineyard tours, wine tastings, access to exclusive and premier events, hotel room upgrades, and more.

  • New Offer: Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). A welcome offer value of $350*.
  • Purchase interest rate: 20.99 percent
  • Balance transfer and cash advance rate: 22.99 percent
  • Annual fee: *$120 waived for the first year, including on supplementary cards. For accounts opened by November 1, 2020
  • Credit limit: $5,000 or higher

2. SimplyCashTM American Express

The SimplyCash American Express Card is also a great choice to earn cash rewards and goes with supplementary cards, no annual fee, and entertainment and travel benefits. Customers earn 5 percent  back during the 6-month promotional period and 1.25 percent back afterwards. Additional benefits include car rental theft and damage coverage, promotional balance transfer rate, shopping discounts, weekend gateway deals, and access to exclusive events such as theater performances and concerts.

  • Funds advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual Fee: No

3. Tangerine Money-Back Credit Card

Another option to look into, the Tangerine Money-Back Credit Card goes with no annual fee, 0.5 back on regular purchases, and 2 percent back on select purchases (categories of your choice). Customers earn unlimited rewards and can either redeem them into their savings accounts or add them to their card balance.

Best Travel Credit Cards

Canadian travel rewards cards feature travel benefits and opportunities, rewards programs, welcome bonuses, double or extra points on travel expenses and gas, and so on. Some cards feature deals and saving opportunities as well as VIP lounge access, travel upgrades, free baggage, and airfare discounts. There are added incentives such as access to luxury airport lounges, car rental and hotel discounts, and comprehensive insurance, including car rental collision, flight delay, and trip delay. Most issuers advertise cards with no blackout dates and other restrictions and limitations.

4. Scotiabank® Gold American Express®

The Scotiabank Gold American Express Card is the perfect choice for customers with no credit history and for newcomers to Canada. The card features add-ons and perks such as special offers, access to airport lounges, concierge service, and travel insurance. Concierge services cover things like show and concert ticket reservations, restaurant reservations, and more. The comprehensive insurance coverage includes lost and delayed baggage, flight delay, trip cancellation, travel accident insurance, etc. The best part is that there are no travel restrictions, and points can be redeemed at any time.

  • New Offer: Earn 20,000 bonus Scotia Rewards points with your first $1,000 in everyday purchases in first 3 months. (For accounts opened by March 1, 2020)
  • Balance transfer rate: 22.99 percent
  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $120

5. BMO® World EliteTM MasterCard®

Offered by the Bank of Montreal, the BMO World Elite MasterCard is also a great choice to earn rewards points and take advantage of a host of added benefits. The list of perks includes complimentary lounge access, medical and travel coverage, roadside assistance, and a generous welcome bonus of 35,000 points on purchases over $3,000 during the first 3-month period. Holders earn 2 points on all purchases and 3 points on entertainment and restaurant and travel purchases.

  • Annual fee: $150
  • Purchase rate: 19.99 percent
  • Cash advance rate: 22.99 percent

Best Credit Card with Low/No Foreign Transaction Fees

No foreign transaction fee cards come handy when making purchases abroad or overseas. This is because conversion and foreign transaction fees hike up your card bill. Banks and finance companies offer cards with added incentives such as travel points, complimentary one-time bonuses, no annual fee, money back, and complimentary travel insurance. Some cards also feature cash statement credit, roadside assistance, cash sign-up bonuses, and supplementary cards. There are plenty of perks to look into, including discounts on hotel bookings, extended travel insurance, travel enhancement credit, and a lot more.

6. Home Trust Preferred Visa

The Home Trust Preferred Visa card is one option to consider to avoid foreign transaction fees. In addition to no conversion surcharges, the card goes with guaranteed hotel bookings, complimentary roadside assistance, 1 percent money back, and auto rental loss and collision coverage. There are no cashback limits and restrictions and no annual fee. Emergency cash is also available for peace of mind and so is emergency card replacement. To apply for the Home Trust Preferred Visa customers are asked to provide details such as address and name of current employer, annual income, previous address, etc.

  • Cash advance rate: 19.99 percent
  • Purchase rate: 19.99 percent
  • Grace period: 21 days or more

7. RogersTM Platinum MasterCard®

Another great card with a low foreign transaction fee, the Rogers Platinum MasterCard is offered by the Rogers Bank and goes with a complimentary bonus, money back rewards, and an annual fee waiver. Cash back can be redeemed at different locations, including Fido and Rogers as well as for merchandise, tickets, subscriptions, and more. Points can be redeemed for pre-payed services as well (like Chatr). The Pay with Rewards app by Rogers is a convenient way to redeem money back rewards.

  • Foreign transaction fee: 2.5 percent of the amount/
  • Balance transfer and cash advance rate: 21.5 percent
  • Purchase rate: 19.99 percent
  • Annual fee: none

Best Credit Cards with Insurance Coverage

Insurance credit cards feature comprehensive coverage, including medical, emergency travel, baggage loss, trip cancellation, and other types of coverage. Providers offer a host of added benefits such as free travel, money back, exclusive shopping and travel offers, and no or low annual fees. Customers gain access to tickets for music and theatre performances, fine dining experiences, perks at resorts and luxury hotels, concierge, and more.

8. Scotiabank Platinum American Express®

This credit card by the Bank of Nova Scotia allows users to collect rewards points for select and everyday purchases. They earn 1 point for each dollar on regular purchases and 4 points per dollar on entertainment and dining, grocery purchases, and gas. There are no travel restrictions, and points can be redeemed at anytime and anywhere. The card also goes with a large minimum credit limit of $10,000. Users are offered 7 types of insurance coverage, including trip interruption and cancellation, emergency medical, lost and delayed baggage, flight delay, etc. Added benefits include premium concierge, VIP pass for exclusive events, complimentary lounge, and a lot more. Customers also enjoy access to special events and experiences, including dining, theatre shows, films, music, and shopping.

  • Purchase rate: 19.99 percent
  • Balance transfers/cash advances: 22.99 percent
  • Annual fee: $399.00

9. BMO® Cashback® World Elite® MasterCard®

Also a great card with comprehensive coverage, the BMO Cashback World Elite MasterCard goes with a host of benefits and incentives, including cash back, supplementary cards to earn more. Customers are offered insurance coverage, including extended warranty and purchase protection, collision damage waiver on car rentals, as well as out of country and out of province emergency medical coverage. In addition, holders earn 1.5 percent back on all purchases charged on the card. Cash can be used in the form of credit or held in an investment or savings or checking account. The minimum income requirement is $80,000 for individual cardholders and $150,000 for households.

  • Interest rate on purchases: 19.99 percent
  • Interest rate on cash advances: 22.99 percent
  • Annual fee: $120

Best Student Credit Cards

Many banks in Canada offer student credit cards, including Scotiabank, TD Canada Trust, RBC, and others. Student cards feature multiple benefits such as competitive interest rates, no annual fee, and rewards points. Users earn points on pharmacy and grocery purchases, gas, bills, and more. Some cards offer extra points on entertainment, restaurant, and travel purchases. The best part is that banks have lenient requirements when it comes to credit rating.

10. Scotiabank L’earnTM Visa Card

Scotiabank offers a student Visa that allows customers to build credit with responsible use and timely payments. Applicants with little credit exposure and no credit history qualify and so do newcomers to Canada. The card goes with no annual fee, money back, car rental discounts, and other benefits. Optional protection for unexpected events is available, including death, critical illness, loss of employment, and others. Students also earn cash back at a rate of 1 percent. The minimum credit limit is $500, and the grace or interest-free period is 21 days or longer. Applicants are asked to provide personal and school information such as expected graduation date, start date, and name of college, university, or another institution.

  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent

11. Scotiabank Scene® Visa Card

Also a great card by the Bank of Nova Scotia, the Scotiabank Scene Visa Card allows customers to earn rewards points on select and regular purchases. Users earn 5 points per dollar at Cineplex, both online and at Cineplex theatres, and 1 point on regular purchases such as clothing, transportation, groceries, meals, and so on. Thus, customers who spend $200 on movies a month will earn a total of 1,000 points. During the first 3 months, the first $500 spent on regular purchases earn a bonus of 2,500 points. Points can be redeemed in different ways – for meals, movies, and more. There is a minimum annual income requirement – $12,000.

  • Annual fee: none
  • Cash advances: 22.99 percent
  • Purchase rate: 19.99 percent

Best Secured Credit Cards and Credit Cards for Bad Credit

Secured cards allow customers with poor and tarnished credit to rebuild their history and rating. This is good news for customers with missed and late payments and a history of delinquencies, foreclosures, and other negative events. Making regular and timely payments over a certain period of time allows borrowers to rebuild credit and apply for loans and cards with beneficial terms. Some secured cards go with higher interest rates, but this is not always the case. The credit limit varies and is usually equal to or lower than the deposit made. The deposit acts as a guarantee of timely payment. This is the reason why customers are approved without credit check. What is more, some providers offer the option to add an authorized user free of charge. Other benefits include Visa and MasterCard benefits, no annual fee, low rate options for authorized and primary cardholders, and more.

12. Refresh Secured Card

This secured Visa by Refresh Financial helps customers to improve their credit score and goes with a competitive interest rate and low annual fee. Virtually everyone gets approved, regardless of their rating. In addition to fast and easy approval, there are added benefits for users, among which free financial education and the opportunity to build savings. The financial intelligence training program offers short educational movies to teach customers how to set financial goals, build personal wealth, save for the future, and use credit cards responsibly. Responsible use is obviously the key to building or rebuilding credit. Wise money management is also essential to stay away from debt in the long run and build a financial safety net. Users also learn how credit works and how to create a personal brand.

  • Interest rate: 17.99 percent
  • Annual fee: $48.95

2020 Canadian Economic Outlook

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Canada’s economy is on its way to a modest recovery due to capital inflows and growth in consumption and housing investment and a stronger real estate market. At the same time, a more limited growth is expected due to a mix of global factors such as Europe’s future after Brexit and trade uncertainty at the international level.

Top Performing Sectors and Industries

The fastest growing sectors and industries in 2020 are expected to be transit, subway, and train car manufacturing, cannabis production, and telecommunications networking equipment manufacturing. The list of top performing sectors also includes foreign currency exchange services, and online auctions and e-commerce. These sectors are expected to experience the fastest growth of over 11 percent.

The transit, subway, and train car manufacturing sector has experienced ups and downs over the last couple of years. Volatility can be explained by lower commodity prices and cyclical purchases. In 2019, the sector saw an increase in revenues of 31 percent, and revenues are projected to increase by 12.2 percent in 2020. Companies in the sector offer repair services and produce new freight cars and trains, rebuilt trains, new passenger cars and trains, parts, and new locomotives. The telecommunications networking equipment manufacturing sector experienced steady growth over the past five years and is expected to expand further. Businesses operating in this sector manufacture products such as parts, base stations, switchboards, and telephone sets.

Real Estate

Economic growth is also fueled by a healthy real estate market, especially in cities such as Ottawa and Toronto. Toronto is one of the fastest growing cities in North America, one of the main reasons being immigration. While the residential market has shrunk after the introduction of the mortgage stress test, home prices and sales are expected to stabilize. Ottawa is also performing well and will experience economic growth in 2020. This can partly be explained by migration from other regions and a strong housing market.

The industrial real estate market is also vibrant as evident from the low vacancy rates across Canada, especially in the Greater Toronto Area and Vancouver. Rental rates have increased due to high demand. The office building sector is also a healthy market, especially for downtown properties. This can be explained by the fast growth of the technology sector and a healthy labour market. Rental housing is also in demand as more and more people choose to downsize, including millennials and baby boomers. Demand is also higher for condominiums than single-family units mainly due to affordability, downsizing, growing populations, and increasing urbanization. In the retail sector, there is less demand for power centres, regional malls, and outlet centres. One of the main reasons is the growth of e-commerce.

There is also demand for senior housing as more and more older people choose to move to senior communities with high-end amenities. Developers, however, face major challenges such as regulations and policies and high costs. In 2017, the FPT Seniors Forum Ministers published a report according to which the majority of seniors prefer to live in senior communities but face challenges such as availability and limited access for mobility aids. The report reveals that many senior homes lack safety features, lighting, railing, ramps, and steps.

Possibility of Recession

In December 2019, Express Employee Professionals conducted a survey interviewing some 585 human resource professionals, decision-makers, and businesses. Of them, 46 percent believe that Canada is unlikely to enter into recession during the next 2 years. Still, 20 percent of respondents foresee a recession in 2 years, 18 percent believe that recession will hit in 1 – 2 years, and 12 percent see it coming in 6 months to 1 year. While growth will remain modest, experts share the view that recession is not expected in 2020. The main factors that fuel growth are residential investment, a vibrant housing market, and a strong job market. The real estate market experienced a decline between 2018 and mid-2019 mainly due to higher interest rates, the impact of the mortgage stress test, and restrictive policies introduced in Ontario and British Columbia. In 2019, the slowdown was offset by the creation of over 360,000 jobs in 10 months. Some 78 percent of businesses owners interviewed by Express Employee Professionals shared that they found it hard to fill job vacancies. Indeed, the unemployment rate in Canada has fallen to historic lows. Wage growth is mainly the result of labour shortages.

According to experts, Canada is unlikely to enter into recession at a time when wages are on the rise and unemployment rates are low unless the U.S. is hit by recession. In 2020, the U.S. economy is expected to grow by 2 percent, driven mainly by rising wages and a healthy labour force. Investment will also boost growth as businesses benefit from tax policy changes.

Labour Market Outlook and Jobs

In August and September 2019, Canada’s economy created about 81,000 and 53,000 jobs, respectively. Employment levels remained steady in all provinces and territories and increased in Nova Scotia and Ontario. While the economy added some 400,000 jobs in 2019, Canada is likely to face a tight labour market because more people are about to leave the workforce (late boomers) than enter the labour market (school graduates). Experts predict that from 2026 on, some 100,000 workers will leave the workforce on an annual basis. Immigration will result in a growth rate of 0.7 percent, and the share of immigrant workers will increase from 24 percent to 30 percent by 2040.

Labour Shortages by Province

A number of positions are in demand in Canada, including licensed practical nurse, welders, industrial electricians, and software engineers. Demand for jobs varies from province to province, however. According to the Newfoundland and Labrador Labour Market Outlook 2020, some 3/4 of job vacancies will be in sectors such as healthcare, government services, education, and social science, and equipment, transportation, and trades. Other jobs in demand include administrative, finance, and business occupations and service and sales occupations. Positions that are expected to experience the fastest growth are in sectors such as management, service and sales, utilities, manufacturing and processing, and health. Alberta will also experience labour shortages by 2025, including positions such as transit and motor vehicle drivers, home support and childcare workers, and medical technicians and technologists. Experienced professionals will be in demand across industries such as healthcare, computer and information systems, and transportation and construction.

The aquaculture, horticulture, and agriculture sectors are also expected to experience labour shortages, including positions such as supervisors and operators. In British Columbia, demand for workers exceeds supply as well, especially in sectors such as administration, finance, and business, sales and service, and equipment operators, transport, and trades and related. Other industries that are expected to face labour shortages include government, community, social, and law services and education, management, and healthcare. The sectors with the largest number of job openings include administration, finance, and business (167,000) and service and sales (187,000). Educational counselors, teachers, nurses, and wholesale and retail managers are also in high demand. In addition to high skilled occupations, businesses are looking to hire kitchen helpers, food counter attendants, and cashiers.

Immigrant Workers

Canadian companies are also looking to hire foreign workers and offer work permit visas. Production, manufacturing, packaging, harvesting, fruit picking, and agricultural businesses are offering jobs across Canada. Foreign workers are offered jobs such as delivery driver, packer and picker, and general farm laborer. Other positions include forklift operator, security guard, textile factory worker, and baby doll maker. The construction industry is also hiring workers such as plumbers, welders, painters, and electricians. The hospitality industry is looking to hire waiters and receptionists. Accountants are also in demand.

Financial Markets and the Banking Sector

According to Deloitte Canada, a number of factors have a negative impact on the banking sector, among which changing work patterns, climate change, changing demographic trends, and a significantly reduced banking capacity. This means that only financial institutions that have differentiated capabilities and capabilities of scale will stay competitive.

When it comes to financial markets, Canada’s equity has grown by 18.3 percent in 2019, following countries such as Australia, Taiwan, Germany, the U.S., and New Zealand. In 2020, experts predict slightly better returns for Canada compared to 2019. Financials, materials, and energy make for about 60 percent of key stock. In 2019, the top performing industries on the Toronto Stock Exchange included technology, financials, utilities, and airlines. Experts predict that in 2020, top performing sectors will include technology, airlines, financial services, and electrical equipment and utilities. Companies with the best performing stocks will include Enghouse Systems Limited, Cargojet Inc., Kinaxis Inc., and Equitable Group Inc.

How to Use Credit Cards Smart

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Credit cards have benefits and drawbacks and knowing them is the key to staying away from debt and making better money choices. While drawbacks include high interest rates and card debt, there are also multiple benefits such as earning cash back and rewards points, easier budgeting, and more.

Drawbacks

Getting in Debt

Some people view credit cards as free money which can be dangerous, especially when combined with overspending and making frivolous purchases. Borrowing large amounts without repaying them can easily land you in serious debt. This, on the other hand, will ruin your score and make it more difficult to borrow in the future.

High Interest Rates

Some cards carry high interest rates and not paying the balance in full can be a recipe for financial disaster. You will incur a lot of debt if you tend to spend more than what you can afford to pay. Some store cards also have high rates of over 30 percent and low limits and are best to be avoided.

Benefits

Using Secured Credit Cards to Rebuild Credit

Secured credit cards help people with tarnished scores to rebuild credit and access a wide array of borrowing tools with beneficial terms. Cards such as the Refresh Financial Secured Card, for example, feature easy approval regardless of your credit score and affordable interest rates to rebuild your history. This is provided that you spend responsibly and pay off the full balance.Refresh Secured CardApply Now

Being Able to Rent a Car/Hotel

Another benefit for cardholders is that they can rent a car or book hotel accommodation. Some cards allow users to earn points that can be redeemed for hotel stays and room upgrades. It is also easier to rent a car or book a hotel with a credit card because having one shows that a bank or another entity has already trusted you with credit.

Car Insurance

Using a card that comes with rental car insurance means that you don’t have to buy additional coverage. This means that you save money and time as you don’t have to deal with insurers and check their policies and terms. Some cards go with rental car collision loss/damage insurance, one example being Scotiabank Platinum American Express. Users are automatically insured in case of car theft or damage. Cardholders are covered up to the cost of the rental, except for cars over $65,000.Scotiabank Platinum American ExpressApply Now

Travel Insurance

Some cards also feature travel perks such as travel insurance for flight cancellations and delays and hotel expenses. Issuers offer different types of policies such as emergency medical transportation, travel accident protection, change fee coverage, and trip cancellation. Scotiabank Platinum American Express, for example, offers comprehensive travel coverage, including travel accident, delayed and lost baggage, trip cancellation, hotel/motel burglary, and more.

Earn Rewards Points

Many Canadian banks run rewards programs that allow users to collect points and redeem points for purchases, events and concerts, flights, and statement credit. Rewards points can also be redeemed for food and drinks, hotel stays, trips, and subscription services. Canadian banks also offer cards with flexible redemption options, for example, the Scotiabank Rewards® Visa Card. Users are offered two options – points plus pay or points only. Rewards points can be redeemed for travel, merchandise, prepaid cards, and gift cards. Users also enjoy exclusive benefits such as cruise shore excursions, cruise upgrades, shipboard credit, hotel and vacation package discounts, and car rental discounts.Scotiabank Rewards Visa Card

Earn Cashback

There are also cards that allow users to earn cash back on purchases, including groceries, dining and entertainment, gas, and more. Many cashback cards feature added benefits such as welcome bonuses, low introductory interest rates, no annual fee, and no spending caps. The Scotia Momentum® Visa Infinite Card and Tangerine Money-Back Credit Card are two options to earn money back. The Scotia Momentum® Visa Infinite Card offers 4 percent back for every dollar spent on subscription purchases, recurring payments, and groceries, including supermarket purchases, gym memberships, utility bills, and insurance premiums.
Subscription services include things like lifestyle boxes, meal kit delivery, and music and video streaming.*Limited time offer – Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, no annual fee in the first year, including on supplementary cards. A welcome offer value of $350*. Offer ends November 1, 2020.Scotia Momentum Visa Infinite CardApply NowThe Tangerine Money-Back Credit Card offers 2 percent back on purchases in multiple categories, including parking and public transportation, entertainment, home improvement, and drug store purchases. Users also earn money back on gas, hotel and motel stays, dining, furniture, and grocery purchases. Cardholders benefit from perks such as no annual fee, no limits, and automatic earning.Tangerine Money-Back Credit CardApply Now

Budget Easier

Some credit cards also offer breakdown of spending by category which makes budgeting easier. It is easy to track and monitor spending by category, including restaurants, gas stations, and supermarkets. Other categories may not be included, for example, pending transactions, cash advances, balance transfers, and returns. Some issuers also offer advanced features such as the option to browse by merchant category, amount, date, and merchant name. There are spending trackers that enable users to access their credit and debit accounts and choose from different spend categories such as education, dining, donations, cash, business, etc. Users can check their account balance, pending balance, and available funds, set savings goals, and make secure payments.

Start a Business with a Credit Card

Starting a business with a credit card is also an option because many issuers offer cards with high limits. The money can be used to cover startup costs and operating expenses such as salaries, insurance, office supplies and equipment, rent, and taxes. Using a business credit card is also a good way to build business credit and benefit from better terms in the future. The type of card to choose depends on the business that you plan to start and the expenses you are likely to incur. If gas money is your biggest expense, for example, then you may check business cards that offer cash back for gas purchases.Scotia Momentum for Business VISASome cards offer both cash back and insurance perks, for example, the Scotia Momentum® for Business VISA. Scotiabank also features discounts on business purchases, a long grace period of 25 days, and supplementary cards. Businesses are offered comprehensive insurance coverage, including rental car collision loss damage and travel emergency medical insurance.

Have Low Conversion Fees between USD/CAD

This is yet another benefit for cardholders who frequently travel or make purchases in US dollars. Many cards charge foreign transaction fees of 2.5 – 3 percent for purchases made outside of Canada. Some cards, however, feature no US dollar foreign currency conversion fees to help save money on purchases in US dollars.

U.S.Dollar Credit Cards in Canada

As said, these cards help avoid conversion fees and come with added perks such as cash back, rewards points, and insurance coverage. The Scotiabank ® U.S. Dollar VISA Card is one option in Canada, featuring additional benefits such as instant cash advances, free supplementary cards, and car rental discounts.Scotiabank U.S. Dollar VISA Card

Low Interest Credit Cards for Longer Term Borrowing

Low interest credit cards help save on interest charges and are a good choice for users who find it difficult to pay off the balance in full. Low interest cards can be used for everyday purchases such as car rentals, travel, event tickets, electronics, phone bill payments, online purchases, and others. They can also be used for large purchases that have to be spread out as the interest charges will be lower than that of standard cards.

Credit Cards for Students

Many Canadian issuers also offer cards to students who usually have limited or no credit exposure. In addition to the chance to establish good credit, there are incentives such as money back, rewards points, and no annual fee. The Scotiabank Scene® Visa Card is one option for students who wish to earn rewards points and have no annual fee. Cardholders earn points for purchases at Cineplex.com and Cineplex theatres and for regular purchases. There are added benefits such as free supplementary cards, car rental and restaurant discounts, and credit card protection. Scotiabank Scene Visa CardApply Now

Using Credit Cards Smart

To save on interest charges, it is important to pay the balance in full each month. In some cases, as with large purchases, it is not possible to pay off the balance but it is a good idea to keep it as low as possible. Carrying a balance of over 30 percent is not only costly but may affect your credit score. If you borrow long term, then it is best to use a low interest credit card to save on interest charges that add up. This is also a way to keep debt from piling up. Lastly, borrowing on a credit card makes sense when you plan to start a new business or another productive venture that will earn profits and help repay your debt.

Using a credit card smart is also making you more financially disciplined. On the other hand, carrying large balances means that you spend more than you can afford. This is a red flag for financial institutions and may affect your credit score, especially if your credit utilization is high.